With so much uncertainty surrounding Brexit – is it better to wait until it’s over before buying a new home?
An investment in a home is a long-term commitment. Although Brexit is presenting uncertainty in the short term, most people would agree the economy will adapt. It’s worth remembering the Help to Buy scheme, which is only in place for another five years, offers great value for money right now. Help to Buy brings down the cost of buying a new home significantly and the equity loan ultimately reduces the risk to the purchaser; the gain is shared, but so is any loss.
The word is that interest rates may rocket – is that true?
Economists have predicted that a No Deal Brexit would lead to an increase in interest rates. However, interest rates are used to control inflation and the general effect of any hike will usually lead to people spending less due to their reduced disposable income. Inflation is currently higher than we would like it to be, but this is generally due to currency fluctuations and increasing oil prices that can’t be controlled by domestic interest rates.
How long will all this uncertainty affect the property market?
The general consensus is that the short-term property market is being affected by uncertainty as it directly correlates with consumer confidence. However, most politicians would agree there is currently an undersupply of available new homes to meet demand so, although we may see a degree of uncertainty in the short term, in the long term the property market, which is a cornerstone of our future economic growth, will hold good.
How will it affect the future value of property?
Home ownership is a long-term commitment and we tend to see property values increase and decrease over time but, generally, all historic data shows that house prices do increase over time.
Taking Brexit into account, what are the best mortgage products to consider?
Thanks to the UK’s current record low rates, there’s never been a better time to get a mortgage. There’ll be the option to fix a mortgage rate from two to 10 years depending on personal preferences and attitude to risk.
The Mortgage Hut’s Chris Schutrups is a member of Highwood’s panel of independent approved local mortgage brokers at our North Stoneham Park development and has access to the entire mortgage market to secure the best deals for homebuyers. Contact the mortgage team on 023 8023 5555 for more information.